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Remuneration Report
A STATEMENT TO SHAREHOLDERS FROM THE CHAIR OF THE REMUNERATION COMMITTEE
Dear Shareholder,
On behalf of the Board, I am pleased to introduce the Directors’ Remuneration Report for the year ended 31
December 2015.
The Committee’s objective remains to focus senior leadership on driving the Group strategy over the short, medium
and long term, and to ensure that the Group’s remuneration continues to help attract, motivate and retain talent.
The main work of the Committee this year revolved around the development of an adequately challenging Corporate
Scorecard, and setting – for the first time – individual key deliverables for each Executive Director. The Committee
also finalised and approved the Legal Rules as well as the Operational and Participants’ Guides for all applicable
incentive schemes namely the Short Term Incentive Plan (‘STIP’) and the Exceptional-Value Creation Awards (‘EVCA’).
The Group has also recently developed a new internal grading structure, synchronised with the Performance
Management System rolled out last year, which correlates employees’ career advancement with their relative
individual performance and their value-addition to the Group. The Committee believes these new initiatives will
help ensure the Company’s pay structures are used effectively to reinforce strong performance and appropriate
behaviours at all levels of staff.
Last year was a challenging year due to the external environment, and in particular the decline in the oil price. The
Company, however, achieved its targets for the majority of the measures within its control. It has maintained a
solid HSSE performance, revamped the former Human Resources into an integrated, systemized People Operation
department, continued its success in collecting EGPC receivables, added over 145 mmboe of audited 2P Reserves,
partnered with EGPC in their first external venture and – perhaps most impressively – commenced production from
Block 9. On the financial side; the Company closed the year with a net loss of US$62.4 million mainly due to the
reduction in oil prices.
These achievements resulted in a 68.6% Corporate Scorecard evaluation as some of the financial measures are
normalised (i.e. based on a reference price for oil). Employees, accordingly, met the threshold for a discretionary
STIP bonus pay-out. However, the Company decided not to award a bonus this year due to the challenging external
environment (2014: US$4.9 million).
Similarly, neither Executive Directors remuneration, nor Non-Executive Directors’ base fees, were increased in 2015.
However, the Company awarded 17 of its employees, mainly in its area offices, an Exceptional-Value Creation Award
(EVCA) with a total expenditure of US$44,000 (2014: US$160,000).
Rachel English
Remuneration Committee Chair
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